Business Law Test 1
81. For tort liability to be imposed, the perpetrator of the tort must have acted with the intent to do wrong. a. True b. False
b
7. To Immanuel Kant, an action is ethical if it is fair and done for the right reasons. a. True b. False
a
71. An appellate court determines whether there has been reversible error. a. True b. False
a
77. State supreme courts generally hear all cases appealed to them. a. True b. False
b
10. Some of the powers delegated to the national government may be exercised by the states. a. True b. False
a
12. The Due Process clause now guarantees protection against loss of property rights without a chance to be heard. a. True b. False
a
15. The equal protection clause prohibits a statute from treating one person differently from another: a. when there is no reasonable ground for classifying them differently. b. if the statute discriminates on the basis of gender. c. unless the statute discriminates on the basis of cultural standards. d. unless the statute is clearly arbitrary or capricious.
a
20. A consent decree is an informal settlement of an enforcement action brought by an administrative agency. a. True b. False
a
24. If other persons are permitted to use a trademark, it will lose its exclusive character and become generic. a. True b. False
a
27. An administrative agency can be created to perform: a. all three of the functions of government. b. only one of the three functions of government (executive, legislative, or judicial). c. any two of the three functions of government. d. none of the three functions of government.
a
30. Libel is the printed equivalent of the spoken form of defamation known as slander. a. True b. False
a
34. When there is a direct conflict between a federal and a state law, federal law prevails under the supremacy clause. a. True b. False
a
35. The same action can have both civil and criminal liability. a. True b. False
a
36. A copyright is the exclusive right given by federal statutes to the creator of a literary or an artistic work to use, reproduce, and display the work. a. True b. False
a
37. A judge rules on the admissibility of evidence presented in the trial. a. True b. False
a
38. Moral relativists believe that ethical decisions will differ based on circumstances. a. True b. False
a
39. Administrative agencies are, in effect, a fourth branch of the government. a. True b. False
a
40. Until 1937, the Supreme Court held that the Commerce Clause gave Congress the power to regulate only interstate commerce, such as an interstate telegraph message. a. True b. False
a
41. A strong President is one of the characteristics of a "living Constitution." a. True b. False
a
43. Ethics is a philosophical concept that deals with values related to the nature of human conduct. a. True b. False
a
44. Procedural law specifies the steps that must be followed in enforcing those rights and liabilities. a. True b. False
a
45. The America Invents Act: a. replaced the patent "first to invent system" with a "first to file" system. b. amended federal copyright law. c. speeds up the application process for energy conservation inventions for a $4,800 fee. d. replaced the patent "first to file system" with a "first to invent" system.
a
48. Trust is a fundamental basis of the capitalist system that is central to the expectations of investors, customers, and other firm stakeholders. a. True b. False
a
49. Individuals can create their own private law when they contract among themselves. a. True b. False
a
5. The Sunshine Act requires most meetings of major administrative agencies to be open to the public. a. True b. False
a
50. Embezzlement involves fraud. a. True
a
56. The United States Supreme Court was created by: a. the U.S. Constitution b. the Uniform State Law Commission. c. the President. d. Congress.
a
57. The Fifth and Fourteenth Amendments prohibit the national and state governments from depriving any person of property without due process of law. a. True b. False
a
59. The degree of care required of a person is: a. that degree of care a reasonably prudent person would exercise under similar circumstances. b. that degree of care the person exercised in the situation at hand. c. that degree of care professionals exercise in similar situations. d. that degree of care an extraordinary person would exercise under similar circumstances.
a
61. Which of the following is not an example of limited or special jurisdiction court? a. Court of original jurisdiction. b. Probate court c. Juvenile court d. Domestic Relations court
a
62. An administrative regulation: a. has the force of law. b. is a suggestion of what will protect the environment. c. is a standard used to guide an industry at the industry's discretion. d. is a guideline that may be voluntarily followed.
a
63. Law is often defined as the body of principles that courts or administrative agencies will enforce. a. True b. False
a
64. All cities, counties, and other governmental subdivisions have basic powers to adopt ordinances, such as traffic and zoning laws, within their sphere of operation. a. True b. False
a
66. Rights guaranteed in the U.S. Constitution are accompanied by duties. a. True b. False
a
73. Trademark law categorizes marks along a spectrum of ______, based on a mark's capacity to serve ______. a. distinctiveness, a source-identifying function. b. suggestiveness, the characteristics of the service to which they relate. c. fancifulness, the characteristics of the product to which they relate. d. descriptiveness, a source-identifying function.
a
75. The authority of a court to decide certain types of cases is called jurisdiction. a. True b. False
a
78. The tort of intentional infliction of emotional distress requires proof of outrageous conduct and resulting emotional distress in the victim. a. True b. False
a
79. A business formula, information compilation, or device that provides an advantage over competitors that do not have it is known as a: a. trade secret. b. strategic advantage. c. competitive advantage. d. restraint of trade.
a
8. A constitution is the written document that establishes the structure of the government and its relationship to the people. a. True b. False
a
80. If a crime does not hurt an identifiable person, it is not a tort. a. True b. False
a
82. Ethical violations can cause lasting detriment to a company's ability to do business through impacts on the company's reputation. a. True b. False
a
84. The Uniform Commercial Code is a good example of uniform state laws. a. True b. False
a
87. A ______ is a legal principle expressed for the first time in court decision. a. precedent b. common law c. statutory law d. case law
a
14. One of the characteristics of the "living" Constitution is limited government. a. True b. False
b
2. In order for a work to be copyrightable, it must possess a significant amount of creativity. a. True b. False
b
21. Plaintiffs are typically awarded punitive damages in negligence cases. a. True b. False
b
22. Depositions are usually taken in the courtroom for purposes of discovery. a. True b. False
b
25. The shopkeeper's privilege gives store managers the absolute right to detain anyone they believe has shoplifted. a. True b. False
b
26. Failure to give ______ means that a defendant's statements or confession cannot be used as evidence against that individual. a. the Sarbanes-Oxley warnings b. the Miranda warnings c. the Fifth Amendment warnings d. the Fourth Amendment warnings
b
28. Statutory law includes U.S. Supreme Court opinions. a. True b. False
b
29. The power to tax income: a. is controlled exactly like the power to wage war. b. may be exercised concurrently by both state and federal governments. c. is possessed only by the federal government. d. is possessed only by state governments.
b
3. In an emergency, an administrative agency can act beyond the scope of the statute that created it. a. True b. False
b
32. The Uniform Partnership Act is a good example of a(n): a. Congressional statute. b. uniform state law. c. substantive law. d. procedural law.
b
33. The Sonny Bono Copyright Extension Act of 1998 extended copyright protection to the life of the author plus 50 years. a. True b. False
b
4. Generally, which power(s) does (do) an administrative agency possess? a. executive only b. all powers necessary to effectively perform the duties entrusted to it c. judicial only d. legislative only
b
46. Service of process refers to: a. a demand letter sent by the plaintiff to the defendant. b. giving the defendant proper notice that a legal action is pending. c. a reply sent to the plaintiff by the defendant. d. a record of the court's preliminary hearing.
b
47. Those uniform state laws that have been adopted by individual states were first written by Congress. a. True b. False
b
53. The law often works to cause our society to operate in a very inefficient manner. a. True b. False
b
55. Statutory law can be created by all of the following except: a. Congress. b. by the courts. c. local governments. d. state legislatures.
b
6. The term "exhaustion of administrative remedies" means that: a. parties to an administrative action must take their appeal to a court of law. b. parties to an administrative action can appeal only after the agency has made a final decision. c. administrative agencies tend to work very hard. d. parties to an agency action must be diligent in pursuing their case.
b
65. A crime is a wrong that arises from a violation of a private duty, whereas a tort is a wrong that arises from a violation of a public duty. a. True b. False
b
68. Federal law __________ conflicting state regulation when a federal law regulates that particular subject. a. parallels b. preempts c. coincides with d. is subordinate to
b
69. All courts have general jurisdiction. a. True b. False
b
72. Meetings are to be open to the public under: a. the Administrative Procedure Act. b. the Sunshine Act. c. the Administrative Protection Act. d. the Freedom of Information Act.
b
74. An administrative agency is barred from examining the records of a business enterprise by the constitutional guarantee against unreasonable searches and seizures. a. True b. False
b
76. Federal supremacy refers to: a. the power of the Supreme Court to make decisions. b. the power of the federal government to legislate in certain areas. c. the power of the President. d. the power of the federal government to declare war.
b
83. The ethical category of integrity and truthfulness is best expressed as maintaining one's values and principles: a. unless deviating will go unnoticed. b. despite the consequences or costs. c. so long as the costs are not great. d. so long as profits can be maintained.
b
86. To initiate a lawsuit, both parties must appear in person and state their claims and defenses in court. a. True b. False
b
9. The mediator in a mediation has the power to force the parties to come to a settlement. a. True b. False
b
b. False 51. Federal judges of the United States: a. are appointed by the Senate, with the approval of the President. b. are appointed by the President, with the approval of the Senate. c. are elected by the public. d. cannot be impeached.
b
18. Perjury occurs: a. only in state courts. b. only in federal court. c. In both oral and written forms. d. only in written form.
c
11. "Primum non nocere" is Latin for: a. Let the buyer beware. b. No news is good news. c. Above all, do no harm. d. Hear no evil, see no evil, and speak no evil.
c
19. Law is: a. always the result of case-law decisions. b. a body of religious principles held by all members of society. c. a body of principles that society establishes to keep things running smoothly. d. derived solely from the United States Constitution.
c
23. The best way to distribute and sell copyrighted computer programs is using: a. patent laws. b. trade secret laws. c. restrictive licensing. d. copyright laws.
c
31. The ____________ protection against self-incrimination cannot be invoked by a corporate officer when an agency has subpoenaed corporate records. a. First Amendment. b. Sixth Amendment. c. Fifth Amendment. d. Fourth Amendment
c
58. Maria intentionally attempts to have Patty break a contract with Alfred. Maria will be liable under which theory of tort? a. product disparagement b. intentional infliction of emotional distress c. contract interference d. Libel
c
60. Judicial Triage is all of the following except: a. a court management tool. b. results in some cases being postponed. c. a directed verdict d. results in some cases being expedited.
c
67. Slander of title and trade libel are collectively known as product __________. a. Divestiture b. Diversion c. Disparagement d. Dilution
c
85. When testifying at trial, the witness for the plaintiff will undergo _______ by the plaintiff's attorney, and a(n) _______ by defense counsel. a. direct examination, recross-examination b. a background check, cross-examination c. direct examination, cross-examination d. redirect examination, cross-examination
c
13. Garnishment applies to the judgment debtor's: a. attorney fees. b. cars. c. land and home. d. wages.
d
17. Computer crimes include: a. theft of hardware. b. intentional damage to information stored on a computer. c. theft of software. d. All of these.
d
42. Blackmail is defined as: a. providing improper political influence. b. giving money to a person to influence that person's judgment. c. an illegal demand made by a public official. d. an illegal demand made by a nonpublic official.
d
52. The person who initiates a civil lawsuit is called the: a. judge. b. defendant. c. prosecutor d. plaintiff.
d
54. The concept of equal protection of the law: a. prohibits any classifications whatsoever. b. does not permit reasonable classifications. c. applies only to conduct by private parties. d. applies to both state and federal governments.
d
70. Which of the following is part of an administrative agency's power to investigate? a. an investigation to ascertain facts with respect to a particular suspected or alleged violation b. an investigation to determine whether the defendant in a proceeding before the agency is complying with its final order c. an investigation to determine whether additional administrative rules need to be adopted d. all of these
d
1. The Racketeer Influenced and Corrupt Organizations (RICO) Act was designed primarily to prevent individuals involved in organized crime from investing money obtained through racketeering in legitimate businesses. a. True b. False
true
